DOW JONES NEWSWIRES 
 

Teradyne Inc. (TER) boosted its already robust forecast for the third quarter, saying demand for testing equipment continued to rebound.

Shares jumped 9.1% premarket to $10.09. The stock through Wednesday had more than doubled this year.

The company now expects earnings excluding items of 10 cents to 13 cents a share on revenue of $250 million to $260 million. Teradyne in late July projected a profit of up to 2 cents and revenue of as much as $205 million - a forecast which was far above analysts' then-expectations.

The latest revenue view is some 50% above second-quarter sales.

As a result of the rebound, Teradyne said temporary salary cuts enacted in late 2008 and early this year will be eliminated in the fourth quarter. A number of companies cut or froze salaries in the wake of the financial crisis a year ago, but few have lifted those efforts as of yet.

Teradyne suffered as slackening demand for consumer electronics rippled up the supply chain, hurting sales of its products. The company announced in January plans to cut 14% of its work force and disclosed additional layoffs several months later. But many technology companies, particularly semiconductor firms, have been reporting brightening prospects in recent weeks.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com